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4 Stocks Under $10 Paying Great Dividends

Take the fear and volatility out of investing in small-caps by focusing on the cheap ones that pay dividends. These four stocks fit the bill with strong balance sheets, great dividends, and profitable investment opportunities.

Investing in small-caps is volatile.

However, history shows that they outperform. Since 2000, the Russell 2000 index, which tracks the small-cap universe, has outperformed the S&P 500 by over 80 percentage points. That’s a difference of $80,000 earned for a $100,000 portfolio.

Focusing on dividends is a great way to get exposure to this outperforming part of the market while reducing the volatility in share prices.

But, finding the right small-cap dividend stock isn’t easy. The universe for small-caps is much broader compared to large-caps, meaning there’s a lot more data to sort through and a greater opportunity for mistakes.

Even the small-cap dividend ETF is handcuffed. The WisdomTree Small-cap Dividend ETF (NYSE: DES) invests in small-cap U.S. dividend paying stocks, but blindly investing in this ETF has its drawnacks.

The WisdomTree Small-cap Dividend ETF is up just 33% since its 2006 inception. The S&P 500 is up 62% over the same period.

So, it pays to focus on small-caps only if you do your due diligence. A couple things that make small-cap investing more secure is companies with safe dividends that are undervalued. With that, we’ve been doing the hard work of finding safe dividends while focusing on healthy balance sheets and less volatile stock prices. Here are the top 4 cheap small-cap dividends:

Cheap Dividend No. 1: Marvell Technology (NASDAQ: MRVL)

Marvell trades right at $10 a share and offers a 2.3% dividend yield. It also has a strong balance sheet, with no debt. It’s gotten cheap for a reason, having been hit with an accounting scandal and being sued by Carnegie Mellon University for patent infringement. However, those two overhangs have been recently removed.

First, Marvell announced earlier this week that the SEC investigation into its accounting had revealed no fraudulent activity. As well, it settled with Carnegie Mellon for $750 million last month. The big news that comes with the settlement is that Marvell will not have to...


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